Wasson€™s Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are:

The company anticipated that the restorers would work a total of 12,000 hours this year. Expected parts and materials were $1,260,000.
In late January, the company experienced a fi re in its facilities that destroyed most of the accounting records. The accountant remembers that the hourly labor rate was $70.00 and that the material loading charge was 83.25%.

Instructions
(a) Determine the profit margin per hour on labor.
(b) Determine the profit margin on materials.
(c) Determine the total price of labor and materials on a job that was completed after the fire that required 150 hours of labor and $60,000 in parts andmaterials.

Transcribed Image Text:

Material Time Loading Charges Charges Restorers' wages and fringe benefits Purchasing agent's salary and fringe benefits Administrative salaries and fringe benefits Other overhead costs $270,000 $ 67,500 21,960 77,490 $348,000 $166,950 54,000 24,000 Total budgeted costs